China Section 301 Modification Details Released

On May 22nd, the office of the United States Trade Representative (USTR) issued a Federal Register Notice on Section 301 Proposed Tariff Modifications and Machinery Exclusions Process.  The Federal Register Notice included the full list of 382 Harmonized Tariff Schedule (HTS) numbers and five statistical reporting numbers, which will have additional tariffs imposed.  The full list of HTS, descriptions, rates and effective year can be found in Appendix A to this document.  Products will have additional tariffs take effect in 2024 on August 1st and January 1st in 2025 and 2026.


The Notice also included the following conclusions by the USTR quoted from the four-year review below:


  • “The section 301 actions have been effective in encouraging China to take steps

toward eliminating some of its technology transfer-related acts, policies, and practices, and have reduced some of the exposure of U.S. persons and businesses to these technology transfer-related acts, policies, and practices.”


  • “China has not eliminated many of its technology transfer-related acts, policies, and

practices, which continue to impose a burden or restriction on U.S. commerce. Instead of pursuing fundamental reform, China has persisted, and even become more aggressive, particularly through cyber intrusions and cybertheft, in its attempts to acquire and absorb foreign technology, which further burden or restrict U.S. commerce.”


  • “Economic analyses generally find that the duties have had small negative effects on

U.S. aggregate economic welfare, positive impacts on U.S. production in the ten sectors most directly affected by the duties, and minimal impacts on economy-wide prices and employment.”


  • “Economic analyses including the principal U.S. Government analysis published by

the U.S. International Trade Commission generally find that the section 301 tariffs have contributed to reducing U.S. imports of goods from China and increasing imports from alternate sources, including U.S. allies and partners, there by potentially supporting U.S. supply chain diversification and resilience.”


In addition to the increase in tariffs for Chinese products, the U.S. administration directed the USTR to establish an exclusion process for particular machinery used in domestic manufacturing classified within a subheading under Chapters 84 and 85 of the tariff schedule, with an emphasis on prioritizing exclusions for certain solar manufacturing equipment.  Procedures for requesting exclusions under this process will be published separately and those exclusions, if granted, will be effective through May 31, 2025.   Appendix B, below, has the full list of HTS numbers identified that are eligible for consideration of temporary exclusions.

Lastly, the Federal Register notes, to support domestic production and decrease reliance on China in a strategic sector, the USTR is proposing 19 temporary exclusions for solar manufacturing equipment.  The proposed exclusions will be effective once the Federal Register Notice is published and apply through May 31, 2025.  Annex C, below, has the full list of proposed temporary exclusions.

The USTR will be soliciting comments regarding the changes being implemented as follows:

  • Comment Period Opens: May 29, 2024, 12:01 am EDT;
  • Comment Period Closes: June 28, 2024, at 11:59 pm EST; and
  • Web Portal for Comments: https://comments.ustrgov.


Modification Details in the link below:

China Section 301 Modification Details


If you have any questions, please contact your local Noatum Logistics representative.